BigCommerce (BIGC, Financial) has introduced a new ecommerce accelerator specifically designed for the UK's building materials sector. This initiative, known as the "Branch of the Future," was created in partnership with Brave Bison, Pimberly, and The Journey. It provides a set of tools aimed at modernizing operations and aligning with the needs of contemporary buyers, ensuring businesses remain competitive.
To reinforce its dedication to this industry, BigCommerce has become a member of the Builders Merchants Federation, a key organization representing various merchants and suppliers across the UK. The accelerator offers business transformation consulting from The Journey, which has over 25 years of expertise in the field, and ecommerce solutions through Brave Bison, utilizing BigCommerce's B2B Edition and Catalyst for intricate workflows.
Integration with Pimberly allows for efficient data and content management through over 1.5 million pre-optimized SKUs tailored for building merchants. This venture positions BigCommerce to empower UK building merchants with digital tools essential for adapting to an evolving market landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for BigCommerce Holdings Inc (BIGC, Financial) is $7.56 with a high estimate of $11.00 and a low estimate of $5.00. The average target implies an upside of 47.28% from the current price of $5.13. More detailed estimate data can be found on the BigCommerce Holdings Inc (BIGC) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, BigCommerce Holdings Inc's (BIGC, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BigCommerce Holdings Inc (BIGC, Financial) in one year is $9.74, suggesting a upside of 89.86% from the current price of $5.13. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BigCommerce Holdings Inc (BIGC) Summary page.
BIGC Key Business Developments
Release Date: May 08, 2025
- Revenue: $82.4 million, a 3% year-over-year growth.
- Annual Revenue Run Rate (ARR): $351 million, a 3% increase year-over-year.
- Non-GAAP Operating Income: $7.6 million, with a 530 basis point margin improvement year-over-year.
- Operating Cash Flow: Approximately $400,000, an improvement of nearly $4 million year-over-year.
- Non-GAAP Gross Margin: 80.3%, up 240 basis points year-over-year.
- Cash, Cash Equivalents, and Marketable Securities: $121.9 million.
- Net Debt Position: $32.2 million, a 59% decrease year-over-year.
- Average Revenue per Enterprise Account: Just over $45,000, a 9% increase year-over-year.
- Guidance for Q2 2025 Revenue: Between $82.5 million and $83.5 million.
- Guidance for Full Year 2025 Revenue: Between $335.1 million and $351.1 million.
- Guidance for Full Year 2025 Non-GAAP Operating Income: Between $16 million and $28 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BigCommerce Holdings Inc (BIGC, Financial) reported a non-GAAP operating income of $7.6 million, marking a 530 basis point margin improvement year-over-year.
- The company achieved an annual revenue run rate (ARR) of $351 million, reflecting a 3% year-over-year increase.
- Revenue for Q1 reached $82.4 million, growing 3% year-over-year, with operating cash flow improving by nearly $4 million year-over-year.
- BigCommerce Holdings Inc (BIGC) successfully reduced headcount by approximately 10% in Q4, reinvesting savings to double their quota-carrying sales capacity.
- The company is on track with its strategic initiatives, including the launch of a BigCommerce payment solution and self-serve versions of Feedonomics and Makeswift, which are expected to drive growth.
Negative Points
- Despite improvements, the growth rates do not yet reflect the full potential of BigCommerce Holdings Inc (BIGC), and accelerating growth remains a top priority.
- The company anticipates 2025 to be a challenging year due to macroeconomic uncertainties, which could impact growth expectations.
- BigCommerce Holdings Inc (BIGC) has experienced five consecutive quarters of slight sequential decline in the number of enterprise accounts.
- The company is closely monitoring potential impacts from global trade and tariffs, which could affect partner and services revenue, constituting approximately 25% of total revenues.
- There is a cautious view on potential downside risks due to macroeconomic uncertainties, which could affect pipeline generation and conversion rates.
